Heat Pump Centered Integrated Community Energy Systems (HPICES) show the promise of utilizing low-grade thermal energy wastes for energy requirements such as space heating and cooling. The Heat Pump-Wastewater Heat Recovery (HP-WHR) scheme is one approach to an HPICES that proposes to reclaim low-grade thermal energy from a community's wastewater effluent through a cascaded heat pump system. This paper details the concept of an HP-WHR system, evaluates the potential performance and economics of such a system, and examines its potential for application. Economic analysis shows HP-WHR systems to be more costly on the basis of life cycle comparison using constant energy prices than conventional residential and light commercial HVAC systems due to the present low energy costs for natural gas and high initial costs of the HP-WHR system. Component selection and optimization of system design for specific applications coupled with rising fuel prices should make HPICES economically competitive with conventional systems in the near future.